The Fourth Industrial Revolution has impacted every industry around the globe. Even though corporate and back office services have profited from technology advancements, industries like manufacturing and the automotive sector are also seeing an increase in new business options, including data monetization.
The automotive industry, in particular, is experiencing a shift from the traditional vehicle and aftermarket sales model driving the bottom line to a revenue model dominated by car data-enabled services from OEM vehicles. At a recent briefing seminar, the Center for Automotive Research cited estimates suggesting “more than $2 trillion in new revenue is available from the utilization of data, which can open new revenue streams in shopping, entertainment, vehicle maintenance, and electric-vehicle charging.”
The potential for capturing, analyzing, and leveraging telematics data, from connected vehicles, are substantial. But data monetization requires solutions and tools that support availability, visibility, and security of data. Overcoming the challenges inherent in data collection and data sharing to take advantage of the opportunities data monetization offers will require automakers and automotive-adjacent companies to embrace agility and concentrate on the customer experience.
The Key Challenges & Solutions of Data Monetization
The automotive industry operates in a highly regulated environment with intricate industry-related considerations. The automobile industry is fiercely competitive, and during the past ten years, it has faced numerous obstacles, including supply chain bottlenecks and disruptive newcomers.
The availability of auto-centric data and mobile connectivityis a significant opportunity and one of the biggest challenges facing manufacturers and enterprises that support the automotive sector. Modern cars are technologically advanced and networked, containing just as much data as our home computers.
Automotive-related businesses require answers to four serious challenges that changing their revenue models to include data sharing will bring forward.
One thing is clear: customers need a voice and awareness of collection and data sharing regarding their information. Discussions on ownership and consent regarding car data are ongoing.
Data interchange between vehicles and an insurance provider insuring the vehicle owner is a prime illustration of this. The usage and valueof data gathered fromthe car varies depending on who is using it. For example, the brake pad manufacturer may be interested in the lifespan of brake pads based on usage. In contrast, an insurance provider may use the data to understand safe driving practices.
Consumers should be informed how their data is gathered, stored, and used and who has access to it regardless of the business purpose. Although it might not be necessary right now, laws like the EU’s GDPR suggest it might be in the future. Businesses must make this information available to customers via self-service methods to improve transparency and ease of access. Solutions must make user configuration, rule setup for data exchange, and consent easy to change.
The line between personal data and vehicle data blurs as cars become more connected. Access to information on wearable devices and related biometrics is increasing while solutions like Apple CarPlay let your iPhone take control of your instrument panel. The global market for vehicle systems is projected to grow to $2.2 billion by 2026.
Increasing access to data opens the door to data theft. Manufacturers and automotive service providers must audit data access and proactively define security safeguards when sharing data from centralized sources and directly from the vehicle. The 2013 Target data breach is a reminder from history that connected providers and inadequately configured security management poses a risk.
The ideal solution for automotive providers would include audit and security controls and set up for network and cyber protection. A data monetization solution must take these aspects into account because individually creating and testing crucial security components could increase the time to market.
Data privacy is one of the biggest challenges facing automakers and service providers. Loss of reputation, income, and trust can occur if customer data is not protected. Data exchanged via connected devices and data gathered from telematics on the vehicle must be included. Data security is simply one aspect of this. The use andsharing, of this information with partners and third parties must also be considered.
Companies need straightforward solutions that provide features that add flexibility to management and rules set up, like compliance configuration controls. As data compliance requirements change, auto manufacturers must be adaptable. Additionally, companies need the ability to anonymize data for sharing with partners to protect the relationship between them and the consumer.
Sufficiency of Data
It’s not surprising that automakers are buried in information about drivers, vehicles, performance, and a seemingly infinite list of other topics. The difficulty lies not in gathering data, but in managing it, aggregating it, and tracking it’s usage. It is a challenge to identify the data required to mine for insightful and relevant information that will reveal trends and patterns without clogging analysis with extraneous data.
Companies require solutions that can effectively scale resources, quickly deploy code and tools to the cloud, and stand up secure and functional integrations without significant overhead or delay. Appropriate data must be accessible to developers while remaining safe, with usage metering for security and monetization and data streaming functionality to reduce bottlenecks and prioritize data sharing.
Positioning for Growth with DMI’s Data Monetization Solution
Solving the challenges of data monetization for the automotive industry is a tall order and calls for a robust solution. We specifically developed DMI’s Data Monetization Solution to take advantage of these opportunities and to address the concerns associated with data sharing. DMI’s solution provides the ability to collect, process, and monitor information assets in real-time. DMI’s solution supports configuration and process control, data customization, scalability, and ease of use for security, integrations, and deployments.
Contact us today to learn more about how DMI’s Data Monetization Solution provides the features you need to create flexible, secure, and accessible solutions for consumers and partners.